PVD's finances & its impact on the City's budget

From Councilman Sam Zurier's 4/10/16 Ward Letter

Last year, the administration engaged a consultant (National Resource Network) to review the City’s finances and to recommend options to address its structural challenges.  Last week, the administration released a preliminary report with budget projections and “benchmark” comparisons with peer communities.  The report identifies four major “drivers” of increased costs – pensions and retiree benefits (“OPEB”), health care other benefit costs, slower revenue growth and excessive staffing or “carrying costs.”  The report compares Providence’s expense in these areas with other communities (primarily other Massachusetts and Connecticut cities of similar size), and notes how Providence is in a relatively weak position compared to its peers.  The report also notes the City’s loss of State aid since 2007, its greater education costs and its extensive backlog of deferred infrastructure maintenance.